The Wall Street Journal produced this little video examining what a downgrade of U.S. debt could mean. This isn’t Rachel Maddow, it’s the WSJ. Even in their telling, it doesn’t sound good. Hint: Remember what happened when Lehman Brothers went down?
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A downgrade of debt (d) and a default (D) are obviously two separate issues all too often conflated by the evening news folks and others. A downgrade is simply an opinion of a rating agency and frankly, those guys have a miserable track record regarding their predictions. A default, on the other hand, tosses us into uncharted territory with likely dire results.
What bothers me is that both d & D damage confidence at two levels. At the business level (see Goldman Sachs comments of reducing forecasts of 2nd half GDP growth) and at the consumer level where this brouhaha has many, especially seniors, scared spitless.
I saw a recent poll that showed only 6% of respondents felt Congress was doing a good job in handling the debt ceiling matter. The sad thing is that I thought that 6% was an overstatement. Aiyah!
when there is a lack of information, I prefer conspiracy theories because they are more fun
here is fun video http://www.youtube.com/watch?v=PTUY16CkS-k
Your sense of difference seems more technical than real..
Many of us have lost thousands on this senseless effort to remove Obama from office. We resemble a banana republic.